US Market a Magnet for Global Firms Despite Regulatory Maze

WILMINGTON, Del. – March 26, 2026 – The United States remains a powerful magnet for global business, with nearly half (45%) of international C-suite leaders planning to establish a legal entity on American soil within the next 12 months, according to a new report from business solutions provider CSC. The findings highlight a robust pipeline of foreign investment driven by the pursuit of supply chain efficiency, strategic partnerships, and access to the world's deepest capital markets.

This wave of planned expansion comes even as executives acknowledge the significant and often underestimated complexities of the U.S. regulatory landscape. The report, which surveyed 300 senior leaders from Europe, the U.K., Asia Pacific, and South America, reveals a core tension: the immense strategic value of the U.S. market is tempered by the practical challenges of navigating its intricate legal and compliance systems.

The Enduring Allure of the American Market

The strong interest detailed in the CSC report is supported by broad macroeconomic trends. The U.S. consistently holds its position as the world's top destination for foreign direct investment (FDI). Kearney's 2024 FDI Confidence Index ranked the U.S. number one for the 12th consecutive year, a sentiment reflected in the data. The total foreign direct investment position in the country grew to an estimated $5.71 trillion by the end of 2024, with European firms alone contributing over $200 billion in new investment that year.

While some metrics, such as expenditures on new greenfield projects and acquisitions, have shown recent moderation, the overall inflow of foreign capital remains formidable. UNCTAD reported nearly $279 billion in new foreign capital flowed into the U.S. in 2024, a 20% increase from the previous year. This resilience underscores the fundamental drivers that make the U.S. an indispensable part of a global strategy: a massive and dynamic consumer economy, leadership in technological innovation, a highly skilled workforce, and a predictable, well-established legal framework that protects investments and intellectual property.

"We’re seeing a clear trend of U.K., European, and Asia-Pacific multinationals incorporating a U.S. entity to reach the approximately 340 million consumers or investors in the U.S.," said Myrna Reijnders, market leader for the Americas at CSC, in the report's press release.

Navigating the Regulatory Labyrinth

For many international firms, the enthusiasm for market entry is soon met with the stark reality of American bureaucracy. The CSC survey found that a staggering 88% of executives view federal and state tax reporting as their most burdensome compliance requirement, followed closely by employment and labor regulations at 80%. Perhaps more telling, half of the companies that have already established a U.S. presence admitted they were surprised by the complexity of these requirements once operations were underway.

The challenges extend far beyond tax and labor. Unlike the more unified systems in other parts of the world, such as the EU's GDPR for data privacy, the U.S. operates a fragmented patchwork of rules that vary not only between the federal and state level but often by city and county. Foreign firms must contend with a dizzying array of compliance hurdles, including:
* State-specific entity formation and corporate governance rules.
* Complex immigration and visa processes for transferring key personnel.
* A labyrinth of trade and customs regulations for importing goods.
* A mosaic of data privacy laws, such as the California Consumer Privacy Act (CCPA).
* Strict industry-specific oversight in sectors like finance (SEC), healthcare (FDA), and energy (EPA).

"Companies assume doing business in the U.S. means you're working in one jurisdiction. But rules and requirements can vary at the federal, state, and local levels,” noted Jenn Kenton, chief commercial officer at CSC. “That's where the challenge lies. Successfully setting up and maintaining a U.S. business means navigating those differences."

The Outsourcing Solution

Faced with this complexity, a growing number of global companies are turning to outsourcing as a strategic necessity rather than a simple cost-saving measure. An overwhelming 79% of executives surveyed indicated they will likely outsource their U.S. compliance or governance functions to a specialist provider.

This trend is fueling a boom in the corporate services market, where providers like CSC, CT Corporation, Vistra, and TMF Group offer expertise in navigating the regulatory maze. By engaging these specialists, companies can mitigate the significant risks of non-compliance—which can include heavy fines and reputational damage—while freeing up internal resources to focus on their core business activities. This shift is part of a broader evolution in the global legal services market, valued at over $800 billion, where technology-driven solutions and specialized expertise are increasingly prized.

Where the Money Flows: Key Investment Hotbeds

The influx of foreign capital is not uniform, with several key sectors attracting the lion's share of investment. Manufacturing remains a dominant force, consistently accounting for over 40% of the total FDI position. Within this sector, there is a notable focus on advanced industries like chemical and pharmaceutical production, as well as a surge in greenfield investments for electric vehicle batteries and components, spurred by the global energy transition and a desire for more resilient supply chains.

The technology sector is another major draw. The U.S. information sector has attracted a cumulative investment of over $261 billion, with foreign firms eager to tap into the country's world-leading innovation in Artificial Intelligence and semiconductors, the latter being bolstered by government incentives like the CHIPS and Science Act.

"It’s a significant movement across sectors—from retail, real estate, insurance, healthcare, and biotech to energy, AI, and technology, including critical infrastructure, such as data centers,” Reijnders observed. This diversification is also apparent in the finance, insurance, and real estate sectors, which continue to attract significant foreign capital due to the stability and depth of U.S. markets. These targeted investments demonstrate a sophisticated approach by global firms, who are strategically allocating capital to high-growth areas within the vast American economy.